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27 July, 07:43

Neiger Flours owes $16,929 in taxes on taxable income of $61,509. If the firm earns $100 more in income, it will owe an additional $48 in taxes. What is the average tax rate on income of $61,609

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  1. 27 July, 08:27
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    E. 27.56 %

    Explanation:

    Firstly, we calculate the total tax for the $61609 income, after which we proceed to calculating the average tax rate using the formula as shown below.

    Given that

    Total tax = 16929 + 48 = 16977

    Total income = 61609

    Recall that

    average tax rate = (total tax : total incom) * 100

    Thus, we have

    Average tax rate = (16977 : 61609) * 100

    = 0.27556 * 100

    = 27. 556%

    = 27.56%
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